The Attorney General of Washington, Nick Brown, has initiated legal action aimed at shutting down 16 mobile casino-style applications operated by Playtika, Aristocrat, and their associated companies. The lawsuit seeks to recover over $225 million that state residents have spent on virtual coins, chips, and credits since 2020.
According to the lawsuit, more than 150,000 residents of Washington utilize these apps every month. The state claims that players have made upwards of 8 million purchases amounting to over $151 million on Playtika's games, along with an additional 2.25 million purchases totaling more than $74 million on Aristocrat's applications.
The games in question, which include popular titles like Slotomania, House of Fun, Caesars Casino Slots, and Bingo Blitz, are available for free download but allow players to buy virtual currency using real money to enhance their gaming experience.
The core of the case revolves around Washington's expansive legal definition of a 'thing of value.' State officials argue that virtual chips and credits fit this definition as they prolong gameplay and enable players to make extra bets, despite not being redeemable for cash.
The lawsuit heavily references the Ninth Circuit's ruling in the 2018 case of Kater v. Churchill Downs, which determined that virtual casino chips could be considered a 'thing of value' under Washington law.
Playtika contests this interpretation, asserting that its games now feature a 'continuous play' option that lets users keep playing without needing to make purchases. The company has filed a motion to dismiss the lawsuit, insisting that its offerings are merely free-to-play entertainment and not gambling.
In addition to the legal classification of the games, the Attorney General claims that the companies have overlooked reports of financial and emotional distress from users, citing complaints about debt, strained relationships, and gambling-related anxiety. The lawsuit also alleges that some apps do not adequately verify the ages of players before allowing them to engage in gameplay.
The state is pursuing restitution, the return of profits, civil penalties, and an injunction to prevent the companies from operating these apps in Washington. Officials argue that these prediction-free virtual casino products, which revolve around paid wagering, evade consumer protections while functioning similarly to traditional gambling.
If the lawsuit is successful, it could further solidify the legal precedent set by the Kater case and have wider implications for social casino operators and other video games that monetize virtual currencies to extend gameplay.
The motion is scheduled for oral arguments next month in a King County courtroom.